INTERIM RESULTS PRESENTATION SIX MONTHS ENDED 31 OCTOBER 2014 - PowerPoint PPT Presentation

INTERIM RESULTS PRESENTATION SIX MONTHS ENDED 31 OCTOBER 2014 January 2015

INTERIM RESULTS PRESENTATION Contents 1 Half year review 4 Financial appendices 2 Financial review 5 Market and capabilities 3 Outlook 2

1. HALF YEAR REVIEW

HALF YEAR REVIEW Unique end to end capabilities Market Intelligence Competitive intelligence in up to 70 markets worldwide Media Value Measurement Holding media buyers to account by benchmarking media and evaluating performance Marketing Performance Optimization Multi source data analytics help companies improve overall performance 4

HALF YEAR REVIEW Global presence and expertise • Over 800 people worldwide • Operating from over 15 global offices plus an extensive partner network • Working with over 1,000 clients across multiple sectors including over 90 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chicago (US), Baden Baden (Germany) and Sydney (Australia) Nordics Canada UK Poland Russia NL Ger France Japan USA Italy ESP China Greece Turkey Portugal Middle Ebiquity offices East India Mexico SEA Ebiquity-branded franchise LATAM South Africa NZ/ Ebiquity partner offices Aus 5

HALF YEAR REVIEW Financial highlights excluding currency impact T otal revenue up 12% Like for like revenue up 7% Underlying operating profit up 16% Underlying PBT up 17% Underlying EPS up 14% 6

HALF YEAR REVIEW Key events in the period Strong operational and financial performance Maiden dividend intended Two new Non-Executive Directors Significant management appointments across the Group New Singapore office performing well Upgrade of Portfolio Platform (MI) 7

2. FINANCIAL REVIEW

FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 5% foreign exchange impact on revenue Euro £0.7m negative 29% impact on revenue 2014 fx rate 1.25 2013 fx rate 1.17 US Dollar Revenue £0.5m negative 23% GBP impact on revenue by 36% 2014 fx rate 1.67 currency 2013 fx rate 1.56 Aus Dollar 8% £0.3m negative impact on revenue 2014 fx rate 1.81 2013 fx rate 1.66 Other: £0.1m-ve 4% 9 64% of revenue in the period is non-GBP. This has had a £1.6m negative impact on revenue

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Revenue analysis £32.7m 2013 reported 2014 reported £35.0m 2014 c/currency £36.6m Total growth 7% Total growth constant currency 12% Like for like (“LFL”) constant currency 7% 10 Constant currency: current year foreign currency denominated results restated at last year’s foreign exchange rates LFL: Prior year results adjusted to include the results of recent acquisitions as if they had been owned for the same period in the prior year

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Revenue by segment MVM £18.2m 52 % LFL constant currency up 11% Total up 10% MI £13.1m 38 % LFL constant £35.0m currency down 1% Total down 5% MPO £3.7m 10 % LFL constant currency up 21% Total up 60% 11

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Client analysis Revenue from Renewal 89% 90% renewable rate contracts (by value) Revenue from Top 100 79% 69% international clients taking sources 2+ services 12 International sources defined as multi-territory or non-UK domestic

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Underlying operating profit and margin Operating profit Margin £4.1m 12.5% 2013 reported 2014 reported £4.1m 11.9% 2014 c/currency £4.7m 12.9% Total growth 1% Total growth constant currency 16% Like for like constant currency 8% 13 £0.6m negative fx impact: Euro £0.3m, USD £0.2m, Other £0.1m

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Underlying diluted EPS analysis 3.06p 2013 reported 2014 reported 3.00p 2014 c/currency 3.49p Reported broadly flat year on year 14% increase at constant currency 14

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Net debt analysis £35,000 AMOUNT £’000s £30,000 • Net debt at Oct 2014 of £30.4m (Apr 14: £22.8m) £25,000 • £5.1m drawn in the period for acquisitions £20,000 • £4.0m undrawn at Oct 2014 £15,000 • £20m accordian facility also available (s/t approval) £10,000 • Current estimate of deferred consideration £5.6m £5,000 (£2.4m in next 12 months) £0 Cash (+ve) Debt (-ve) Net debt (-ve) 31 Oct 2014 30 April 2014 15

FINANCIAL REVIEW : 6 MONTHS TO 31 OCTOBER 2014 Financial highlights excluding currency impact Revenue EPS +12% +14% £35.0m 3.0p Operating Operating +16% +0.4pp profit £4.1m mgn 11.9% 16

3. OUTLOOK

OUTLOOK Remainder of 14/15 and beyond Increasing momentum behind ‘big data’ analytics - market estimated to be worth $100 billion 1 by 2018 Strong growth in key segments (MPO and MVM) MI showing signs of stabilisation with new initiatives Investment in strengthened management team key to driving future growth Some dampening effect of currency fluctuations Market trends and strong pipeline bode well for future First dividend payment sign of growing confidence 18 1 EBQ extrapolation based on CMO Council survey

4. FINANCIAL APPENDICES

FINANCIAL APPENDICES Segmental reporting 6m to October 2014 MVM MI MPO Total segments Unallocated Total Revenue 18,168 13,141 3,662 34,971 - 34,971 u/l operating profit 3,837 1,816 1,446 7,099 (2,953) 4,146 Margin 21.1% 13.8% 39.5% 20.3% 11.9% 6m to October 2013 MVM MI MPO Total segments Unallocated Total Revenue 16,501 13,889 2,290 32,680 - 32,680 u/l operating profit 3,745 2,477 999 7,221 (3,126) 4,095 Margin 22.7% 17.8% 43.6% 22.1% 12.5% 12m to April 2014 MVM MI MPO Total segments Unallocated Total Revenue 36,477 27,162 4,813 68,452 - 68,452 u/l operating profit 10,289 4,801 1,523 16,613 (5,274) 11,339 Margin 28.2% 17.7% 31.6% 24.3% 16.6% 20

FINANCIAL APPENDICES Year on year revenue analysis Organic Acquisitions Total 609 ¹ 32,680 6 months ended 31 October 2013 32,071 - 1,854 Organic revenue increase 1,854 (176) (1,636) Foreign exchange impact (1,460) 1,304¹ 1,304 Full year impact of prior year acquisition - 768² 768 Revenue from current year acquisitions - 2,506 34,971 6 months ended 31 October 2014 32,465 ¹ Represents Stratigent acquisition (acquired August 2013) ² Represents CMCG acquisition (acquired January 2014) 6% organic growth excluding the impact of foreign exchange movements 21

FINANCIAL APPENDICES Renewals analysis % renewable % renewal rate revenue (value) MVM 100% 90% MI 89% 90% MPO 31% n/a Total 89% 90% 22

FINANCIAL APPENDICES Highlighted items 6 months to 6 months to 31 Oct 2014 31 Oct 2013 Recurring (non-cash) 1,641 1,024 Non recurring 1,367 838 Total 3,008 1,862 Recurring: increase in share options charge Non-recurring: increase in deferred consideration estimate, and integration costs 23

FINANCIAL APPENDICES Profit before tax 6 months to 6 months to 31 Oct 2014 31 Oct 2013 Underlying operating profit 4,146 4,095 Highlighted items (3,008) (1,862) Reporting operating profit 1,138 2,233 Net finance costs/associates (561) (532) Reported profit before tax 577 1,701 Underlying profit before tax 3,585 3,563 24

FINANCIAL APPENDICES Outstanding deferred consideration As at 31 October 2014 2013/14 2014/15 Stratigent CMCG Billetts America Nature of business Multi-channel analytics in the US Media auditing in China Media auditing in the US Operations Chicago Shanghai and Beijing New York Transaction date 19 August 2013 15 January 2014 7 May 2014 Transaction detail 100% acquisition 100% acquisition Remaining 15% MI acquisition Cash up front £2,700k £1,600K - Deferred consideration max £2,764k £5,183k £2,489k Deferred consideration paid £2,098k £1,163k £330k Estimated remaining deferred consideration: £625k: £3,833k: £1,157k: H1 2015/16 £375k £909k £1,157k H1 2016/17 £250k £1,386k - H1 2017/18 - £1,538k - Total potential consideration £5,464k £6,783k £2,489k Total estimated consideration £5,423k £6,596k £1,487k Earn out end date April 2016 April 2017 April 2015 Earn out basis 1 yr profit multiple & 3 yr rev growth/profit mgns 3 yr based on profit multiple 3 yr based on profit multiple Key financials at acquisition Dec 12: Rev £2.2m Dec 13: Rev £1.4m n/a u/l op profit £0.6m u/l op profit £0.4m 20 staff 22 staff 25 Estimated remaining deferred consideration as at 31 October 2014: 15/16 £2,441k, 16/17 £1,636k, 17/18 £1,538k = total £5,615k

FINANCIAL APPENDICES Statement of financial position October 2014 October 2013 April 2014 Non current assets 51,493 Goodwill 55,418 55,121 12,103 Purchased intangibles 11,756 12,659 5,436 Other 7,086 6,393 69,032 74,260 74,173 12,509 Current assets Trade debtors 12,376 15,683 5,611 Accrued income 7,847 8,287 6,635 Cash 6,521 5,010 1,531 Prepayments 1,786 1,907 844 Other 988 1,086 27,130 28,105 33,386 2,944 Current liabilities Trade creditors 2,908 4,989 2,639 Loans 2,943 2,410 5,404 Deferred income 4,508 7,401 3,319 Accruals 3,437 3,198 10,177 Other 6,228 10,414 24,483 29,184 19,252 24,467 Non current liabilities Loans 26,235 32,679 3,129 Deferred tax 2,730 2,888 1,072 Other 4,735 3,825 28,668 39,234 33,858 26 43,011 Net assets 44,517 43,879